Public Act 90-0208 of the 90th General Assembly
Public Act 90-0208
HB1111 Enrolled LRB9003240SMsb
AN ACT to amend the Mechanics Lien Act by adding Section
21.02.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Mechanics Lien Act is amended by adding
Section 21.02 as follows:
(770 ILCS 60/21.02 new)
Sec. 21.02. Construction trust funds.
(a) Money held in trust; trustees. Any owner,
contractor, subcontractor, or supplier of any tier who
requests or requires the execution and delivery of a waiver
of mechanics lien by any person who furnishes labor,
services, or materials for the improvement of a lot or a
tract of land in exchange for payment or the promise of
payment, shall hold in trust the unpaid sums subject to the
waiver of mechanics lien, as trustee for the person who
furnished the labor, services, or materials.
(b) How trust moneys held; commingling. Nothing
contained in this Section shall be construed as requiring
moneys held in trust by an owner, contractor, subcontractor,
or material supplier under this Section to be placed in a
separate account. If an owner, contractor, subcontractor, or
material supplier commingles moneys held in trust under this
Section with other moneys, the mere commingling of the moneys
does not constitute a violation of this Section.
(c) Violation of this Section. Any owner, contractor,
subcontractor, or material supplier who knowingly retains or
uses the moneys held in trust under this Section or any part
thereof, for any purpose other than to pay those persons for
whom the moneys are held in trust, shall be liable to any
person who successfully enforces his or her rights under this
Section for all damages sustained by that person.
Section 99. Effective date. This Act takes effect upon
becoming law.